Microchip Technology (NASDAQ:MCHP) Reaches New 12-Month High – Time to Buy?

Shares of Microchip Technology Incorporated (NASDAQ:MCHP) hit a new 52-week high on Thursday . The company traded as high as $92.37 and last traded at $92.4530, with a volume of 4305514 shares changing hands. The stock had previously closed at $90.17.

Analyst Ratings Changes

A number of brokerages have weighed in on MCHP. Needham & Company LLC lifted their price target on shares of Microchip Technology from $77.00 to $84.00 and gave the company a “buy” rating in a research report on Friday, February 6th. Zacks Research cut shares of Microchip Technology from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, February 24th. JPMorgan Chase & Co. lifted their price target on shares of Microchip Technology from $85.00 to $95.00 and gave the company an “overweight” rating in a research report on Friday, February 6th. Susquehanna lifted their price target on shares of Microchip Technology from $75.00 to $90.00 and gave the company a “positive” rating in a research report on Thursday, January 22nd. Finally, Barclays began coverage on shares of Microchip Technology in a research report on Thursday, February 12th. They set an “equal weight” rating and a $80.00 price target on the stock. Three research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $86.00.

Microchip Technology Trading Up 1.1%

The business’s 50-day moving average price is $71.81 and its 200 day moving average price is $68.39. The company has a debt-to-equity ratio of 0.82, a current ratio of 2.16 and a quick ratio of 1.16. The firm has a market capitalization of $50.84 billion, a price-to-earnings ratio of -323.97, a PEG ratio of 1.24 and a beta of 1.74.

Microchip Technology (NASDAQ:MCHP) last posted its earnings results on Thursday, February 5th. The semiconductor company reported $0.44 EPS for the quarter, topping analysts’ consensus estimates of $0.43 by $0.01. Microchip Technology had a negative net margin of 1.57% and a positive return on equity of 7.16%. The business had revenue of $1.19 billion for the quarter, compared to analysts’ expectations of $1.19 billion. During the same period in the previous year, the company posted $0.20 earnings per share. The business’s revenue for the quarter was up 15.6% compared to the same quarter last year. Microchip Technology has set its Q4 2026 guidance at 0.480-0.520 EPS. On average, equities analysts forecast that Microchip Technology Incorporated will post 1.16 earnings per share for the current fiscal year.

Microchip Technology Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 10th. Stockholders of record on Monday, February 23rd were given a dividend of $0.455 per share. This represents a $1.82 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend was Monday, February 23rd. Microchip Technology’s payout ratio is presently -627.59%.

Insider Transactions at Microchip Technology

In related news, CEO Steve Sanghi sold 416,581 shares of the company’s stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $88.53, for a total value of $36,879,915.93. Following the sale, the chief executive officer directly owned 9,495,805 shares of the company’s stock, valued at $840,663,616.65. This represents a 4.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.94% of the stock is owned by corporate insiders.

Institutional Trading of Microchip Technology

Several institutional investors have recently added to or reduced their stakes in the stock. LGT Fund Management Co Ltd. acquired a new stake in Microchip Technology in the first quarter valued at $3,428,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its holdings in Microchip Technology by 0.3% in the first quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 126,053 shares of the semiconductor company’s stock valued at $8,144,000 after acquiring an additional 342 shares in the last quarter. Citizens Financial Group Inc. RI raised its holdings in Microchip Technology by 9.4% in the first quarter. Citizens Financial Group Inc. RI now owns 5,756 shares of the semiconductor company’s stock valued at $372,000 after acquiring an additional 496 shares in the last quarter. Fifth Third Bancorp raised its holdings in Microchip Technology by 31.7% in the first quarter. Fifth Third Bancorp now owns 524,271 shares of the semiconductor company’s stock valued at $33,873,000 after acquiring an additional 126,097 shares in the last quarter. Finally, Sequoia Financial Advisors LLC raised its holdings in Microchip Technology by 13.2% in the first quarter. Sequoia Financial Advisors LLC now owns 26,527 shares of the semiconductor company’s stock valued at $1,714,000 after acquiring an additional 3,092 shares in the last quarter. 91.51% of the stock is owned by institutional investors and hedge funds.

About Microchip Technology

Microchip Technology Inc is a semiconductor company headquartered in Chandler, Arizona, that designs, develops and supplies a broad portfolio of embedded control and analog semiconductors. Its product lineup centers on microcontrollers (including the well-known PIC family), digital signal controllers and associated development tools and software, along with a range of mixed-signal and analog devices, nonvolatile memory, power management, timing, interface, wireless and security products. The company also provides integrated hardware and software solutions intended to simplify embedded design and accelerate time to market for OEMs and contract manufacturers.

Microchip’s products are used across a wide range of end markets, including automotive, industrial automation, consumer electronics, communications, aerospace and defense, and Internet of Things (IoT) applications.